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51 times earnings? Smart Technology's $600mm IPO

|Includes: SMART Technologies (SMT)

SMART Tech (Nasdaq: SMT) $600mm IPO at price range mid-point of $17
Scheduled for Thursday, July 15

IPOreport includes compare/contrast valuations

BUSINESS OVERVIEW


Interactive white boards sold primarily to the education market
SUMMARY
. Market leader with 48% market share worldwide
. Rapid growth in the past year, profit margins expanded
. US stimulus package helped increase revenue for the fiscal year ended March 31, 2010
. Recent acquisition expected to add cross-selling opportunities to customers
. 75% of IPO from selling shareholders
. Principal whiteboard competitor is Promethean World, which trades on the London stock exchange PRW
VALUATIONS
$180mm swing in foreign exchange gains/losses between last two fiscal years:  loss of $90mm in fiscal 2009, profit of $92mm in 2010.  For valuation purchase income figures adjusted for 2010 to show no foreign exchange effects on the income statement, see below
On a compare & contrast basis SMT is priced at a premium to PRW
Both companies are primarily owned by private equity/buyout firms

IPOreport includes compare/contrast valuations



Disclosure: none